Business leaders are facing a paradox: Organizations have invested heavily in developing strong leaders, yet many are at risk of losing them — not because of performance, but because advancement opportunities are limited.
According to SHRM’s CHRO Priorities and Perspectives report, more than half of CHROs said leadership and manager development is a top priority, yet advancement pathways are not always available in real time. Frozen headcounts, role consolidation, and slower organizational movement mean fewer chairs at the next level.
“The individuals looking for the next opportunity are finding that those opportunities aren’t coming consistently or quickly,” said leadership development consultant Cynthia Emrich.
So, the question becomes: How do organizations keep high-performing leaders engaged when promotions aren’t immediately available?
The answer is shifting the focus from promotion readiness to impact readiness — the ability to take on broader influence, decision-making, and visibility even without a change in title. This means designing growth pathways that prepare and position leaders to contribute enterprisewide, regardless of title or reporting line.
Reframing Growth From Promotion to Purpose
Leadership development remains a strategic priority, and organizations are becoming more precise about what that development is meant to accomplish. Nearly one-third of learning and development (L&D) leaders (33%) are prioritizing the creation of enterprise-aligned L&D strategies, while another 33% are focused on targeting skills training to close capability gaps, according to SHRM’s L&D Executives: Priorities and Perspectives report.
Taken together, these priorities signal a broader shift: Development is no longer just about preparing leaders for their next role, it’s about ensuring they can create value where they are. When advancement slows, organizations must offer growth that is grounded in shared purpose, not just future promotion.
Among those overseeing leadership and manager development, power skills — such as communication, conflict resolution, and empathetic leadership — emerged as the top development focus, cited by 47% of L&D leaders, according to SHRM’s L&D Executives: Priorities and Perspectives report. These skills are foundational not because they accelerate promotion but because they enable leaders to influence across boundaries, align teams around shared goals, and mobilize others toward outcomes that matter.
To support that shift, organizations need to move from preparing leaders for the next role to preparing them for greater impact in their current one. This is the essence of impact readiness — the ability to take on broader scope, visibility, and decision-making responsibility even without a formal change in title or reporting line. Impact-ready leaders don’t wait for authority, they operate with clarity about why their work matters and who it serves.
“Managers play a defining role here,” Emrich said. “High-performing leaders don’t just need opportunities — they need sponsorship: someone who proactively opens doors, makes introductions, and advocates for expanded responsibility. Growth should be co-created, not self-requested.”
When development is anchored in purpose — shared values, mutual understanding, and meaningful contribution — it becomes a strategy for retention as much as capability. Leaders are far more likely to stay engaged when growth feels intentional, connected, and consequential, even when the next title isn’t yet available.
When Purpose Becomes Real
Emrich’s experience illustrates this principle. Early in her career, she identified a capability gap in a regional market and was sponsored into an 18-month assignment abroad to help close it. Her manager didn’t wait for an open role — they created a development runway that expanded her scope, visibility, and confidence.
The organization gained capability and regional insight. She gained influence, purpose, and momentum.
“The most rewarding development experiences often happen outside the formal job description,” Emrich said. “When leaders are given the chance to stretch into work that matters, purpose deepens and commitment follows.
Investing in role-adjacent projects and real-world leadership experiences isn’t just good for engagement — it also builds leadership continuity. When new clients, strategies, or opportunities emerge, the organization already has leaders with the influence, clarity, and purpose to step in.
Retention ROI: What Organizations Lose When Top Talent Leaves
Replacing high-potential employees is costly. The average nonexecutive cost-per-hire across all industries is $5,475. The average executive cost-per-hire across all industries is $35,879. But the larger cost is what leaves with them: institutional knowledge, client trust, decision-making shorthand, and the cultural norms that enable teams to work effectively.
“The sheer cost of replacing top talent is significant for businesses,” Emrich said, “but the deeper loss is cultural. When a leader walks out the door, you lose institutional memory, trusted relationships, and shared language. Those elements can take years to rebuild.”
When high-performing leaders stay, organizations maintain productivity, succession strength, and cultural continuity. Retention, in this context, becomes a strategic investment in stability and long-term leadership capacity.
Designing Horizontal Growth Pathways
Talent mobility isn’t only vertical — it can be lateral, experiential, or network-based, giving high-performers new challenges even when roles don’t open up. This approach aligns with a broader shift among L&D leaders: Nearly one-quarter (24%) are prioritizing knowledge and skills transfer across teams and functions.
This reflects a key insight: Leadership capability grows fastest through real work, not just formal training. Horizontal development expands contributions, visibility, and influence — the core elements of impact readiness.
Practical pathways include:
- Special project assignments — such as co-leading a cross-functional initiative or workstream — to build strategic thinking and collaboration.
- Role-adjacent stretch work — such as supporting a transformation effort, product launch, or process redesign — to strengthen systems awareness and problem-solving.
- Visibility-building opportunities — such as presenting insights or updates to senior leadership — to develop confidence and executive presence.
- Network expansion and sponsorship — such as partnering with senior leaders or participating in cross-functional cohorts — to build relational capital and influence networks.
Consider a high-performing manager who co-leads a cross-functional customer experience project. They collaborate across the Product, Sales, and Operations teams; facilitate alignment conversations; and present recommendations to senior leadership. There is no change in title, but their enterprise perspective, influence network, and strategic credibility expand significantly. This is horizontal growth in action.
These experiences matter because they deepen purpose. When a leader can see how their work shapes outcomes beyond their immediate role — when they understand why their contributions matter — motivation and commitment strengthen.
As Emrich noted, “When leaders are given the chance to stretch into work that matters, purpose deepens — and commitment follows.
Investing in role-adjacent and experiential development isn’t a workaround for promotions — it’s a strategic lever for leadership continuity, cultural strength, and succession readiness. Horizontal development builds leaders who are ready when opportunity emerges.
Making Readiness Measurable
Data can serve as an early-warning system for disengagement. Tracking retention risk, promotion readiness, and developmental progress helps HR leaders identify where high-potential employees need new challenges.
“Assessments can help you understand where a slice of your talent is strong and also highlight the gaps,” Emrich said. “If we look at younger generations, there seems to be an emphasis on growing and developing, so if we leverage collective insights through assessments, we can create experiences that close gaps, create a stronger talent pool, and answer a desire for growth and development opportunities.”
Research-based assessments such as the SHRM Linkage Purposeful Leadership 360° Assessment with Inclusion Scale provide organizations with critical benchmarking data and leading indicators. The data allows organizations to support leaders and keep them engaged.
Keep Them Close, Keep Them Growing
Great leaders stay where they’re seen, stretched, and sponsored — even when the next role isn’t open.
Strategic sponsorship and visibility are key bridges between readiness and opportunity, ensuring high-potential leaders feel seen and invested in, even during organizational slowdowns.
“It’s incumbent on us as managers to think more intentionally and consistently about how we allow team members to grow and develop beyond the traditional career ladder,” Emrich said.
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